Ghada Ismail

For SMEs, business travel is more than an operational necessity, it’s a gateway to new opportunities, markets, and partnerships. Yet, with every trip comes the challenge of balancing costs, time, and measurable outcomes. The real question isn’t just how to travel but how to make every journey count. By adopting a results-driven mindset, businesses can transform travel into a strategic investment. This means setting clear objectives, leveraging innovative tools, and evaluating ROI to ensure that each trip delivers value, whether it’s landing a major client, strengthening industry relationships, or uncovering market insights. With the right approach, business travel becomes not just a journey, but a cornerstone of growth. 

Start with Clear Objectives

Before embarking on any business trip, define its purpose. Are you meeting with a potential client, attending an industry conference, or scouting a new market? Setting specific goals allows you to measure the trip’s success and prioritize your time effectively. For instance, if the objective is to secure a partnership, pre-arranging meetings and understanding your counterpart’s priorities is crucial.

Plan Efficient Itineraries

Time is money, especially during business trips. Group meetings and activities in the same geographic area to minimize transit time. Utilize tools like online schedulers to book appointments seamlessly and leave room for unforeseen changes. A well-planned itinerary not only saves time but also ensures you’re making the most of every hour on the ground.

Optimize Travel Budgets

Maximizing value doesn’t always mean cutting costs but ensuring every Riyal spent drives results. Invest in loyalty programs that offer benefits like free upgrades or discounted stays, and consider flexible travel policies that strike a balance between cost-effectiveness and traveler comfort. Encouraging team members to travel during off-peak times or book in advance can also lead to significant savings.

Foster Networking Opportunities

A business trip isn’t just about scheduled meetings. Networking at conferences, trade shows, or even during casual interactions can yield unexpected benefits. Encourage team members to attend relevant events, prepare elevator pitches, and keep business cards handy. These interactions often open doors to partnerships and collaborations that weren’t initially on the agenda.

Collect and Analyze Data

Tracking the outcomes of business trips is vital for evaluating their ROI. Use data to assess which destinations, events, or strategies generate the best results. Feedback from employees can provide insights into what worked and what could be improved for future trips. Over time, this data-driven approach refines your travel strategies and ensures every journey adds value.

Balance Work and Well-Being

Frequent travel can take a toll on employees’ health and productivity. Encourage practices like staying hydrated, eating healthy, and allocating time for rest. A well-rested traveler is more likely to perform effectively, make better decisions, and represent your company professionally.

Measure Success

After the trip, evaluate its outcomes against the initial objectives. Did it lead to a signed deal, a promising lead, or valuable insights? Sharing these results with the team fosters accountability and ensures every trip’s value is maximized.

Wrapping things up…

Optimizing business travel is not just about efficiency; it’s about aligning every journey with your company’s broader goals. With the right strategies, tools, and mindset, SMEs can turn each trip into a stepping stone for growth. By balancing cost-effectiveness, employee well-being, and strategic outcomes, you’ll ensure every journey is a worthwhile investment in your business’s future.

Stay tuned for the next episode, where we explore ‘The Future of Business Travel for SMEs: Trends and Predictions’ and uncover how evolving technologies and global shifts are shaping the way small businesses connect and thrive.

Kholoud Hussein 

Venture capital (VC) has become a cornerstone of startup ecosystems worldwide, providing the fuel that propels innovative ideas into successful businesses. In Saudi Arabia, the VC landscape has grown significantly, and it is supported by government initiatives, international investor interest, and an increasingly dynamic entrepreneurial culture. 

This blog explores how venture capitalists identify and invest in promising startups, tips for attracting VC funding, and case studies from Saudi Arabia highlighting venture capital's transformative power.

How VCs Identify and Invest in Promising Startups

Venture capitalists are not just financiers; they are strategic partners who invest in startups with high-growth potential. In Saudi Arabia, VCs consider several factors when deciding where to invest:

1. Market Opportunity:
   VCs assess the size and growth potential of the market a startup is targeting. For example, in 2024, sectors like fintech, artificial intelligence, and health tech emerged as top investment areas in the Kingdom due to their alignment with Vision 2030. Mohammed Alzahrani, a managing partner at Saudi-based Raed Ventures, explains: "We look for startups addressing sizable market gaps, particularly those leveraging technology to create scalable solutions."
2. Founding Team:
   The strength, expertise, and commitment of the founding team are crucial. VCs prioritize founders with a clear vision and the ability to execute it effectively.
3. Traction and Metrics:
   Startups with proven traction—such as user acquisition, revenue growth, or strong partnerships—are more likely to attract VC attention. These metrics demonstrate product-market fit and potential for scalability.
4. Competitive Edge:
   A unique value proposition or innovative technology can set a startup apart. Venture capitalists look for businesses that can defend their market position against competitors.
5. Alignment with Long-Term Goals:
   In Saudi Arabia, VCs often align their investments with the national agenda. Sectors like renewable energy, smart cities, and education technology are particularly attractive due to government support and public-private partnerships.

Tips for Startups to Attract VC Funding

Securing venture capital requires a strategic approach. Startups in Saudi Arabia can enhance their chances of attracting VC funding by following these tips:

1. Develop a Strong Business Plan:
   A clear, well-researched business plan outlining market opportunity, financial projections, and growth strategies is essential. Ensure your pitch deck is visually compelling and succinct.
2. Demonstrate Traction:
   Show measurable progress, whether it’s growing a customer base, securing partnerships, or achieving profitability in key areas.
3. Build Relationships with Investors:
   Networking is vital. Attend events like the LEAP tech conference or connect with VCs through platforms.
4. Leverage Government Programs:
   Take advantage of Saudi initiatives like the Monsha’at SME program or the PIF-backed venture funds. These programs provide funding and credibility, making your startup more attractive to private investors.
5. Highlight Your Team’s Strengths:
   Showcase the expertise and dedication of your team. Investors need confidence in the people behind the business, as much as in the idea itself.
6. Be Open to Feedback:
   Engage in conversations with potential investors and be prepared to iterate on your model based on their feedback. Flexibility demonstrates your willingness to adapt to market needs.

Case Studies: Saudi Startups Scaling with VC Support

Jahez

One of Saudi Arabia’s most notable startup success stories, Jahez, an online food delivery platform, benefited immensely from venture capital support. The company secured significant funding in its early stages, enabling it to scale rapidly and expand operations across the Kingdom. By 2024, Jahez had become a leader in its sector, with a successful IPO cementing its status as a powerhouse in the Saudi tech ecosystem.

Tamara

Tamara, a buy-now-pay-later (BNPL) fintech company, has also thrived with VC backing. The startup raised $110 million in a Series A funding round, led by Checkout.com, in 2021. This injection of capital helped Tamara enhance its platform and scale its services across the MENA region. Today, Tamara continues to attract customers and investors, solidifying its position as a leader in Saudi fintech.

Sary

Sary, a B2B e-commerce platform, raised $75 million in a Series C round in 2022, which accelerated its growth and allowed it to expand regionally. The startup leveraged the funding to build a robust technology infrastructure and optimize supply chain operations, catering to thousands of businesses across the Middle East.

Looking Ahead: The Future of VC in Saudi Arabia

As the Saudi startup ecosystem matures, venture capital is poised to play an even greater role in fostering innovation and economic diversification. With the Kingdom attracting record levels of foreign direct investment and a supportive regulatory environment, startups in Saudi Arabia are well-positioned to thrive.

Yasir Al-Rumayyan, Governor of the Public Investment Fund, highlights the broader vision: "By investing in emerging technologies and entrepreneurial ventures, we are laying the foundation for a dynamic, diversified economy that will benefit future generations."

As Saudi Arabia continues to embrace its entrepreneurial potential, venture capital serves as the lifeblood for turning bold ideas into market-shaping realities. From tech unicorns like Tamara to industry disruptors like Jahez, these success stories underscore the transformative power of venture capital. 

For startups, the journey to securing VC funding begins with a clear vision, robust strategy, and the willingness to innovate. With a wealth of opportunities on the horizon, the Kingdom’s startup ecosystem is set to become a beacon of innovation in the Middle East and beyond.

Don’t miss our next article in this series, "Accelerators and Incubators: Launchpads for Startup Success," where we’ll delve into the vital role these programs play in nurturing Saudi Arabia’s entrepreneurial talent.

Ghada Ismail

Business travel has long been a vital driver of growth, connectivity, and collaboration across industries worldwide. Though often viewed simply as a logistical necessity, its impact extends far beyond the surface. This episode of How Business Travel Fuels SME Success explores how business travel fosters innovation, strengthens partnerships, and fuels economic growth across various sectors, pinpointing which industries benefit most from these opportunities.

Business Travel in Tech: Building Global Connections

In the technology sector, where rapid innovation and collaboration are key to success, business travel plays an indispensable role. Both startups and established tech companies rely on in-person meetings to secure funding, forge partnerships, and explore untapped markets. For example, a fintech startup attending an international conference could connect with potential investors or partners, gaining access to resources that fast-track their global expansion. Whether attending summits, expos, or strategic meetings, business travel enables companies to build the relationships necessary for long-term growth and global competitiveness.

Manufacturing and Supply Chains: Optimizing Operations

For the manufacturing sector, business travel is essential for maintaining operational efficiency and optimizing supply chains. Visiting factories, meeting with suppliers, and overseeing production processes in person allow businesses to address issues in real-time and ensure quality control. Companies that prioritize travel often experience better cost efficiencies, stronger supplier relationships, and smoother operations.

Creative Industries: Building Networks and Inspiration

In creative sectors such as media, design, and entertainment, business travel serves as a catalyst for inspiration and collaboration. Industry events like film festivals or design expos allow professionals to network, exchange ideas, and showcase their work globally. These interactions open doors to new opportunities and contribute to a more dynamic and thriving creative ecosystem.

Professional Services: Strengthening Client Relationships

For professional services, including consulting, legal, and financial firms, business travel is key to building trust and maintaining strong client relationships. In-person meetings, workshops, and site visits help companies better understand client needs and deliver customized solutions. Firms that invest in travel often see improved client satisfaction and retention rates.

Hospitality and Tourism: Fueling Economic Growth

The hospitality and tourism sectors are perhaps the most directly connected to business travel. Conferences, trade shows, and corporate events bring a constant stream of business travelers, boosting local economies and creating jobs. Additionally, the overlap between business and leisure travel amplifies the economic impact, benefiting the broader tourism industry.

Who Benefits the Most?

While all sectors gain from business travel, those driven by relationship-building, innovation, and operational oversight see the most significant returns. SMEs, in particular, can leverage business travel to expand their networks, access new markets, and enhance their competitive edge. Regions that position themselves as business travel hubs also reap substantial economic benefits from the influx of visitors and associated spending.

Adapting to a Changing Landscape

The COVID-19 pandemic reshaped business travel, introducing new challenges and opportunities. Hybrid models that blend virtual and in-person interactions have become the norm. Nevertheless, the enduring value of face-to-face meetings remains evident. Companies that strike a balance between the advantages of in-person engagement and the efficiencies of digital tools are poised for success in this new landscape.

Wrapping things up…

Business travel remains a powerful engine of growth across industries. It fosters collaboration, drives innovation, and connects individuals in ways that digital alternatives cannot fully replicate. By strategically leveraging business travel, companies can unlock new opportunities and solidify their position in an increasingly interconnected world.

Stay tuned for the next episode, where we will explore actionable strategies for optimizing business travel and maximizing the value of every journey.

Ghada Ismail

For small and medium-sized enterprises (SMEs), business travel isn’t just about getting from point A to point B—it’s a doorway to opportunity. It’s the handshake that seals a deal, the visit that builds trust, and the conference that sparks new ideas. But let’s face it: travel can also be stressful, expensive, and downright exhausting. From tight budgets to packed schedules, SMEs often face hurdles that can make even the most promising trip feel like an uphill climb. In this episode, we’ll explore these challenges and uncover practical strategies to help SMEs make every journey worthwhile, productive, and rewarding.

Common Challenges SMEs Face in Business Travel

1. Budget Constraints
   Unlike larger corporations, SMEs often lack the financial leeway to absorb fluctuating travel costs. Airfares, accommodation, and unforeseen expenses can quickly strain limited budgets.
2. Time Management
   SME teams are often lean, meaning that every employee's time is critical. Frequent travel can disrupt daily operations and create bottlenecks.
3. Compliance and Policy Gaps
   Many SMEs operate without a formal travel policy, leading to inconsistent booking practices and difficulty managing expenses.
4. Employee Burnout
   Frequent travel can take a toll on employees, especially when trips are poorly planned, lack flexibility, or do not allow for adequate rest.
5. Limited Access to Resources
   SMEs may struggle to access the same discounts or perks that larger companies secure through volume-based agreements with airlines, hotels, or travel agencies.

Strategies for Optimizing Business Travel

1. Establish a Clear Travel Policy
   A well-defined travel policy can standardize booking processes, set expense limits, and encourage cost-effective choices. Include guidelines on preferred vendors, reimbursement procedures, and sustainability practices.
2. Leverage Technology
   Travel management platforms can simplify booking, track expenses in real time, and provide access to competitive rates. Tools like mobile apps also help employees stay organized on the go.
3. Plan Strategically
   Consolidate travel itineraries to minimize trips, schedule meetings back-to-back where possible, and book in advance to secure better deals. Evaluate the necessity of travel versus virtual alternatives.
4. Negotiate Vendor Partnerships
   Partnering with airlines, hotels, or rental services can yield discounts even for smaller businesses. Look into loyalty programs and industry-specific group rates.
5. Prioritize Employee Well-Being
   Ensure travel schedules allow for rest and recovery, and provide flexible options where feasible. Offer perks like lounge access or upgraded accommodations for longer trips.
6. Monitor and Optimize Spend
   Regularly review travel expenses to identify trends and opportunities for savings. Use analytics to track compliance with policies and ROI from trips.

To wrap things up

Optimizing business travel isn’t just about cutting costs; it’s about finding balance. SMEs that take a strategic, employee-focused approach can turn challenges into opportunities, ensuring that every trip contributes to their growth story. With the right tools, policies, and mindset, SMEs can navigate the complexities of business travel with confidence and purpose.

Stay tuned for the next episode in our series, where we explore the role of business travel across sectors and identify who benefits most.

Kholoud Hussein 

Saudi Arabia's startup ecosystem is evolving at an unprecedented pace, fueled by the Kingdom's Vision 2030 and a global shift toward innovation and technology. As the country positions itself as a hub for entrepreneurship in the MENA region, 2025 is set to be a transformative year for startups. From green technologies to the rise of venture capital, several key trends are shaping the sector's future.

Here are eight key trends expected to redefine the startup landscape in Saudi Arabia in 2025:

1. AI-Driven Startups on the Rise

Trend: Artificial intelligence (AI) is becoming the backbone of innovation, with startups leveraging AI across industries such as healthcare, fintech, and logistics.

Impact in Saudi Arabia:

• The National Strategy for Data and AI (NSDAI) is driving AI adoption, offering support to startups focused on AI-based solutions.
• AI-powered platforms are enabling efficiencies in sectors like retail, education, and government services.
• Startups like Mozn and Lucidya are leading the way in AI-driven analytics and insights.

Expect more Saudi startups to explore generative AI and AI-powered personalization to create new opportunities.

2. Green Tech and Sustainability Startups Flourishing

Trend: With sustainability becoming a global priority, green tech startups are emerging to address climate challenges and contribute to Saudi Arabia's Saudi Green Initiative.

Impact in Saudi Arabia:

• The government’s commitment to achieving net-zero emissions by 2060 has created a fertile ground for startups in renewable energy, carbon capture, and sustainable infrastructure.
• Startups like Desert Control and Nomadd are innovating in agriculture and solar cleaning technologies, respectively.

In 2025, the startup ecosystem will likely see more investments and partnerships in green technologies, supported by both local and international venture capital.

3. Expansion of Venture Capital and Angel Investing

Trend: The availability of funding has been a game-changer for startups, with 2025 expected to bring a surge in venture capital (VC) and angel investments.

Impact in Saudi Arabia:

• Government-backed initiatives like Saudi Venture Capital Company (SVC) and Jada Fund of Funds are creating funding opportunities.
• International VCs are increasingly entering the Saudi market, attracted by its rapid growth and tech-savvy population.
• The volume of deals is expected to grow beyond the SAR 4 billion recorded in 2024.

What to Watch:
Expect new funds targeting specific sectors like health tech, AI, and sustainability.

4. The Rise of Women-Led Startups

Trend: With increased participation of women in the workforce, Saudi Arabia is witnessing a rise in women-led startups.

Impact in Saudi Arabia:

• Government programs like Monsha’at’s SME Bank and accelerators tailored for women entrepreneurs are fostering growth.
• Women-led startups are making strides in education tech, health tech, and e-commerce, driven by diverse perspectives and innovation.

Expect more success stories of women entrepreneurs breaking barriers and scaling globally.

5. Integration of Fintech Across Industries

Trend: Fintech continues to dominate, with its integration into sectors like real estate, healthcare, and e-commerce reshaping business models.

Impact in Saudi Arabia:

• Fintech adoption is accelerated by the Saudi Central Bank (SAMA), promoting innovation through open banking and regulatory sandboxes.
• Startups like Tabby and Tamara are driving the Buy Now, Pay Later (BNPL) trend, transforming consumer finance.

What to Watch:
The expansion of blockchain and AI-powered fintech solutions will redefine how businesses and consumers interact with financial services.

6. Focus on Localized Solutions for Saudi Markets

Trend: Startups are increasingly focusing on hyper-localized solutions tailored to the Saudi market's unique needs.

Impact in Saudi Arabia:

• Startups addressing local challenges, such as desert farming, waste management, and urban mobility, are gaining traction.
• Food tech startups like Chefaa and logistics innovators like Jahez are examples of how localization drives success.

In 2025, startups will further explore untapped markets in Saudi Arabia’s smaller cities and rural areas, leveraging digital transformation.

7. Smart Cities as Startup Testing Grounds

Trend: Smart cities like Neom and The Line are becoming incubators for innovation and startup experimentation.

Impact in Saudi Arabia:

• These projects offer startups access to cutting-edge infrastructure, IoT systems, and sustainable living environments.
• Sectors such as transportation, renewable energy, and AI-powered urban planning are attracting significant startup activity.

Startups that align with smart city goals will benefit from government support and increased visibility on a global stage.

8. Evolving Regulatory Environment Supporting Startups

Trend: Proactive regulatory changes are fostering a business-friendly environment, enabling startups to thrive.

Impact in Saudi Arabia:

• Initiatives like the Small and Medium Enterprises General Authority (Monsha’at) and regulatory sandboxes have streamlined processes for business registration and compliance.
• The Kingdom’s move to reduce corporate taxes and simplify business licenses is attracting entrepreneurs.

In 2025, expect more reforms designed to boost foreign investment and support startup scalability.

A Dynamic Year Ahead for Saudi Startups

The startup ecosystem in Saudi Arabia is on the cusp of significant transformation. With government backing, technological innovation, and a growing pool of talent, 2025 is set to be a defining year. The trends outlined above highlight the Kingdom's commitment to becoming a global hub for entrepreneurship, aligned with Vision 2030.

By focusing on sectors such as AI, fintech, sustainability, and smart cities, Saudi startups are not just addressing local challenges but also paving the way for regional and global impact. As funding increases and new opportunities emerge, the Kingdom’s entrepreneurial landscape is poised to thrive, making 2025 a year to watch closely.

Ghada Ismail

In the digital age, the allure of virtual meetings is undeniable. Yet, when it comes to forging meaningful business relationships, nothing quite matches the depth and impact of face-to-face interactions. For SMEs striving for growth, these in-person connections are more than a luxury—they are a strategic necessity. This episode explores why stepping beyond the screen can lead to unparalleled opportunities and stronger partnerships.

Building Trust Through Presence

Trust is the cornerstone of any successful business relationship, and building it often requires more than virtual connections. In-person meetings foster a sense of authenticity and commitment that digital platforms struggle to achieve. A handshake, shared meal, or even casual conversation can create bonds that lead to long-term partnerships. For SMEs, these connections can be pivotal in securing deals, attracting investors, or establishing reliable supply chains.

Reading the Unspoken: Body Language and Context

Face-to-face meetings provide an opportunity to pick up on subtle cues that virtual platforms often miss. Body language, tone of voice, and other non-verbal signals offer critical insights into a partner’s intentions and comfort level. These nuanced observations can guide SMEs in negotiations, helping them adapt strategies in real time. Moreover, being physically present allows a deeper understanding of cultural and organizational contexts, particularly when entering new markets.

Showcasing Commitment and Seriousness

Traveling to meet a client or partner in person demonstrates dedication and seriousness about the relationship. This effort often leaves a lasting impression, showcasing the SME’s commitment to collaboration and growth. For businesses looking to expand internationally, such gestures can be the deciding factor in winning over stakeholders who value personal interaction.

Networking Beyond the Agenda

While virtual meetings tend to stick strictly to the agenda, in-person visits often open doors to informal networking opportunities. Whether it’s a chance encounter at a conference or a post-meeting coffee chat, these interactions can spark unexpected collaborations and ideas. SMEs can benefit immensely from these serendipitous moments, gaining insights and contacts that might not have emerged in a structured online meeting.

The Human Element in a Digital Age

At its core, business is about people. Despite advancements in technology, the human need for connection remains unchanged. Face-to-face interactions provide a level of engagement and emotional resonance that is hard to achieve through screens. For SMEs navigating competitive industries, this human touch can set them apart, fostering loyalty and goodwill that fuel long-term success.

Balancing Virtual and In-Person Interactions

While the importance of face-to-face meetings is undeniable, SMEs must strike a balance between physical and virtual engagements. Strategic planning can help businesses maximize the benefits of both approaches. For instance, SMEs can use virtual meetings for routine updates while reserving travel for high-stakes negotiations, key networking events, or market exploration trips.

Wrapping things up...

In the quest for growth, SMEs must look beyond the convenience of digital communication and embrace the unique value of in-person interactions. These moments of genuine connection, trust-building, and cultural understanding can be transformative, propelling businesses toward new opportunities and stronger partnerships.

In the next episode, we’ll tackle the practical side of business travel with Navigating Challenges: How SMEs Optimize Business Travel, exploring how small businesses can overcome hurdles to make the most of their journeys.

Kholoud Hussein 

In 2024, Saudi Arabia's venture capital (VC) landscape has experienced unprecedented growth, attracting a significant influx of international investors. This surge is a testament to the Kingdom's strategic economic reforms, robust startup ecosystem, and commitment to innovation. This article delves into the factors driving this trend, supported by recent data, reports, and insights from officials and venture capitalists.

A Surge in Venture Capital Investment

Saudi Arabia has emerged as a leader in the Middle East and North Africa (MENA) region's venture capital scene. In the first half of 2024, the Kingdom secured $412 million in total venture capital funding across 63 deals, marking a 7% year-over-year decline—the smallest among the top three MENA countries. This performance is particularly notable given the broader regional downturn, with the MENA region experiencing an average 34% drop in funding during the same period. 

Saudi Arabia's contribution to the MENA region's total funding surged from 38% in H1 2023 to 54% in H1 2024, with the Kingdom accounting for 30% of total deals, up from 25% in the same period last year. 

Government Initiatives Fueling Growth

The Saudi government's strategic initiatives have created a conducive environment for venture capital investment. Vision 2030, the Kingdom's ambitious blueprint for economic diversification, emphasizes the development of a knowledge-based economy. This vision has led to significant investments in technology, infrastructure, and regulatory reforms to foster entrepreneurship and innovation.

One notable initiative is the establishment of the Public Investment Fund (PIF), which has been pivotal in channeling investments into emerging technologies and startups. In 2024, PIF announced plans to create a $40 billion fund focused on artificial intelligence (AI), signaling the Kingdom's commitment to becoming a global leader in this domain. 

Yasir Al-Rumayyan, Governor of PIF, stated: "Our goal is to position Saudi Arabia at the forefront of technological innovation. By investing in AI and other emerging technologies, we are not only diversifying our economy but also creating opportunities for future generations." 

International Investors Take Notice

The Kingdom's proactive approach has not gone unnoticed by international investors. The combination of government support, a burgeoning startup ecosystem, and a strategic geographic location has made Saudi Arabia an attractive destination for venture capital.

Steel Atlas, a New York-based venture firm, exemplifies this trend. In 2024, the firm raised its first $10 million fund to connect U.S. and European startups with funding and deployment opportunities in Saudi Arabia. Cameron Porter, co-founder of Steel Atlas, highlighted the alignment between Saudi Arabia's Vision 2030 goals and the interests of Western venture investors in advanced industrial, climate, and AI technologies. 

Porter remarked: "Saudi Arabia's commitment to innovation and its strategic vision for the future present unparalleled opportunities for investors and startups alike." 

Sectoral Focus: Technology and Innovation

The influx of venture capital is particularly pronounced in sectors aligned with the Kingdom's strategic priorities. Technology, especially AI, enterprise software, and fintech, has attracted substantial investment.

In 2024, Saudi Arabia intensified its efforts to position itself as a global leader in AI. The Kingdom hosted several high-profile AI events and forged significant partnerships, such as the collaboration between Groq and Saudi Aramco to build the largest AI inference data center. These initiatives are part of "Project Transcendence," aimed at developing a comprehensive AI ecosystem within Saudi Arabia. 

Regulatory Reforms Enhance Investment Climate

Saudi Arabia's commitment to creating a business-friendly environment has been further demonstrated through regulatory reforms aimed at attracting foreign direct investment (FDI). The Capital Market Authority (CMA) has implemented measures to enhance market transparency, protect investor rights, and streamline procedures for foreign investors.

These reforms have yielded positive results. According to the Oxford Business Group, Saudi Arabia has made substantial progress in attracting foreign investors to its capital markets in recent years, transforming the Kingdom into a key investment destination. 

Challenges and Considerations

While the venture capital landscape in Saudi Arabia is burgeoning, investors must navigate certain challenges. Understanding the local market dynamics, cultural nuances, and regulatory environment is crucial for success. Additionally, the global economic climate and geopolitical factors can influence investment decisions.

However, the Kingdom's commitment to economic diversification and its strategic initiatives provide a strong foundation for sustained growth in the venture capital sector.

Future Outlook

The trajectory of Saudi Arabia's venture capital market indicates a promising future. With continued government support, a growing startup ecosystem, and increasing international investor interest, the Kingdom is well-positioned to become a leading hub for innovation and entrepreneurship in the region.

As Saudi Arabia continues to implement its Vision 2030, the venture capital landscape is expected to evolve further, offering new opportunities for investors and entrepreneurs alike.

Come to the conclusion, the year 2024 marks a significant milestone in Saudi Arabia's venture capital journey. The convergence of government initiatives, regulatory reforms, and international investor interest has created a dynamic and thriving ecosystem poised for sustained growth.

As the Kingdom continues to diversify its economy and invest in innovation, the venture capital market is set to play a pivotal role in shaping Saudi Arabia's economic future.

Ghada Ismail

In today’s fast-paced and hyper-connected world, small and medium enterprises (SMEs) are constantly seeking ways to stand out, grow, and seize new opportunities. While digital platforms and virtual meetings have transformed communication, business travel remains a critical driver for growth and success. A research by the American Express highlights a compelling fact: 57% of SMEs report that business travel has directly fueled their expansion. Let’s explore why hitting the road is more than just a logistical necessity—it’s a strategic growth catalyst.

The Numbers Tell the Story

The connection between business travel and SME success is undeniable. American Express’s findings reveal that over half of SMEs attribute their growth to the opportunities generated through business trips. Whether it’s closing deals, forging partnerships, or discovering untapped markets, face-to-face interactions often create outcomes that virtual tools can’t replicate.

Key statistics show that SMEs that invest in business travel are more likely to:

• Achieve higher revenue growth.
• Expand into new regions or markets.
• Establish stronger and longer-lasting client relationships.

These numbers highlight why travel is not just an expense but an investment in a company’s future.

Turning Trips Into Opportunities

For many SMEs, business travel has been a game-changer. Consider the story of a Saudi-based technology startup that expanded its footprint in the GCC market through a series of strategic trips. By attending industry expos, hosting in-person client meetings, and engaging in cultural immersion, the startup landed contracts that would have been difficult to secure remotely. These trips were not just about showing up; they were about demonstrating commitment, building trust, and gaining a competitive edge.

Similarly, a boutique manufacturing firm leveraged travel to explore supplier partnerships in Europe. What began as a routine factory visit evolved into a strategic partnership that improved their supply chain efficiency and reduced costs. Such success stories illustrate the transformative power of travel for SMEs.

The Strategic Imperative for SMEs

For small businesses, every decision must align with overarching goals. Business travel is no exception. Here’s how SMEs can maximize the impact of their trips:

1. Set Clear Objectives: Whether it’s lead generation, client retention, or market exploration, having a clear purpose for travel ensures measurable outcomes.
2. Leverage Networking Opportunities: Conferences and industry events are goldmines for connecting with potential clients and collaborators. SMEs should prioritize these opportunities to build lasting relationships.
3. Focus on Long-Term Gains: While travel may come with upfront costs, the long-term benefits often outweigh the initial investment. Deals closed in person tend to be more robust and enduring.

The ROI of Business Travel

Understanding the return on investment (ROI) of business travel is essential for SMEs to ensure their trips deliver value. Calculating ROI involves comparing the outcomes of travel against its costs, including transportation, accommodation, and time. Here are some ways SMEs can evaluate the ROI of their travel efforts:

1. Track Measurable Outcomes: Metrics such as deals closed, new leads generated, or partnerships secured provide tangible evidence of travel’s impact.
2. Assess Revenue Growth: Analyze whether specific trips contribute to increased sales or expanded market share in the months following travel.
3. Consider Intangible Benefits: Improved client relationships, enhanced brand visibility, and market insights may not show immediate financial returns but often lead to long-term gains.

By systematically evaluating these factors, SMEs can make informed decisions about their travel strategies and refine their approach to maximize impact.

Conclusion

Business travel is far more than a logistical endeavor for SMEs; it’s a pathway to growth, innovation, and resilience. The 57% of SMEs that recognize its value are reaping the benefits of expanded horizons and stronger connections. As technology continues to enhance global connectivity, the importance of stepping out into the world—literally—will remain a vital component of SME success.

In the next post, we’ll dive deeper into why in-person meetings have the edge over digital interactions and how they can amplify the value of business travel. Stay tuned!

Kholoud Hussein 

In 2024, Saudi Arabia's economic landscape underwent a significant transformation, driven by a burgeoning entrepreneurial wave that has redefined its economic structure and global standing. This shift aligns with the Kingdom's Vision 2030, aiming to diversify the economy away from oil dependency and foster a vibrant private sector. The rise in entrepreneurship has stimulated economic growth and spurred innovation, job creation, and increased foreign investment.

The Rise of Entrepreneurship in Saudi Arabia

Saudi Arabia has made substantial strides in creating a conducive environment for entrepreneurs. According to the Global Entrepreneurship Monitor (GEM), the Kingdom boasts a high-quality entrepreneurial ecosystem, with all individual Entrepreneurial Framework Conditions assessed as above average. This robust environment has led to a surge in entrepreneurial activities, with a significant increase in the number of startups across various sectors. 

The government's commitment to fostering entrepreneurship is evident through initiatives like the Social Development Bank's partnership with Empretec. Projects such as LogiHub and FintechHub are expected to benefit around 900 Saudi startup founders by 2029, with 165 having already commenced their entrepreneurial journey in 2024. 

Economic Impact in 2024

The entrepreneurial surge has had a profound impact on Saudi Arabia's economy. In the second quarter of 2024, the Kingdom's non-oil economic activity grew by 4.9% year-on-year, highlighting the accelerating momentum in Saudi Arabia's dynamic non-oil sectors. 

This growth is further supported by the International Monetary Fund (IMF), which notes that Saudi Arabia's economy is transforming, implementing reforms to reduce oil dependence, diversify income sources, and enhance competitiveness. The IMF's annual review indicates that non-oil growth has accelerated since 2021, averaging 4.8% in 2022, reflecting the success of these reforms. 

Government Initiatives and Support

The Saudi government has been instrumental in promoting entrepreneurship through various initiatives. The Vision 2030 plan, overseen by Crown Prince Mohammed bin Salman, focuses on large-scale infrastructure projects and the development of new sectors to reduce oil dependency. The Public Investment Fund (PIF), valued at $925 billion, plays a pivotal role in this transformation by investing in domestic initiatives and reducing foreign investments by about a third to concentrate on local projects. 

Finance Minister Mohammed Al Jadaan emphasized the government's commitment during the Future Investment Initiative conference in Riyadh, stating that Saudi Arabia is intensifying its efforts to transform its economy under the Vision 2030 plan. He expressed satisfaction with the progress but highlighted the need for continued effort to achieve the Kingdom's ambitious goals. 

Private Sector and Foreign Investment

The entrepreneurial wave has also attracted significant foreign investment. Saudi Arabia aims to attract $100 billion in foreign direct investment (FDI) by 2030, essential for sustaining economic transformation. While current FDI trends show challenges in meeting this target, the government's efforts to create a business-friendly environment have instilled confidence among investors. 

The private sector's role in this transformation is crucial. The rise in startups has led to increased demand for venture capital and financial services, further stimulating economic growth. The government's focus on fostering a diversified economy continues to bear fruit, supported by enabling policies, a growing private sector, and an increasingly dynamic workforce that prominently includes women. 

Challenges and Future Outlook

Despite the positive developments, challenges remain. The success of the entrepreneurial wave hinges on overcoming hurdles such as an insufficiently skilled workforce and a business environment that has traditionally relied on personal connections. Additionally, the country's fiscal stability is vulnerable to oil price fluctuations, complicating the PIF’s ability to sustain investments. 

Looking ahead, Saudi Arabia's economy is projected to remain resilient, with GDP expected to grow by 1.6% in 2024 and accelerate to 4.9% in 2025. This growth is anticipated to be driven by the non-oil sector, thanks to the government's diversification efforts and the entrepreneurial wave reshaping the economy. 

To conclude, the entrepreneurial wave in Saudi Arabia is reshaping the Kingdom's economy, reducing its dependence on oil, and fostering a vibrant private sector. Supported by government initiatives, a conducive business environment, and increased foreign investment, entrepreneurship is set to play a pivotal role in Saudi Arabia's economic landscape over the coming years. As the Kingdom continues its transformation under Vision 2030, the entrepreneurial spirit will be a driving force in achieving sustainable economic growth and diversification.

Kholoud Hussein 

Saudi Arabia’s startup investment landscape is undergoing a seismic shift in 2024, fueled by a deliberate focus on artificial intelligence (AI), enterprise software, and small-to-medium enterprises (SMEs). These sectors represent the Kingdom’s strategic vision for economic diversification and innovation, aligning closely with the ambitious goals of Vision 2030. This transformation has been driven by a mix of government initiatives, private sector investments, and a growing entrepreneurial ecosystem.

In this comprehensive analysis, we explore the factors catalyzing this investment shift, the challenges that lie ahead, and the prospects for a more diversified and tech-driven Saudi economy.

The Vision 2030 Connection: A Blueprint for Change

The Saudi Arabian government has long been committed to reducing the economy’s dependence on oil revenues. Vision 2030, a cornerstone policy introduced in 2016, has provided the roadmap for this economic metamorphosis. One of its key objectives is fostering a knowledge-based economy powered by technology, innovation, and entrepreneurship.

In 2024, this vision became more tangible with a $6.4 billion commitment to next-generation technologies announced at the LEAP tech event in Riyadh. The funds are targeted at nurturing innovation in AI, enterprise solutions, and other cutting-edge fields. Abdullah Al-Swaha, the Minister of Communications and Information Technology, summed up the strategy succinctly, stating:

“Our focus on AI and enterprise software is pivotal to driving economic diversification and enhancing the competitiveness of our SMEs.”

This targeted investment aligns with Saudi Arabia’s broader efforts to establish itself as a global leader in tech and innovation, supported by regulatory reforms and infrastructure development.

Artificial Intelligence: The Jewel in the Crown

Artificial intelligence stands out as a transformative force in Saudi Arabia’s economic diversification strategy. The National Center for Artificial Intelligence (NCAI) has spearheaded AI adoption across sectors, from healthcare to finance and logistics.

In 2024, the NCAI launched several initiatives designed to build a robust AI ecosystem. This included training over 5,000 professionals in AI-related disciplines, establishing partnerships with global tech leaders, and funding for local startups integrating AI into their operations.

Moreover, AI-driven solutions are being adopted at scale within industries such as oil and gas, retail, and smart city development. For example, NEOM, the futuristic mega-city project, leverages AI to optimize urban planning, energy usage, and transportation systems.

By prioritizing AI, Saudi Arabia aims not only to solve domestic challenges but also to position itself as a global exporter of AI technologies and expertise.

Enterprise Software: Streamlining Business Operations

The rise of enterprise software as a key investment sector is another indicator of Saudi Arabia’s evolving startup ecosystem. Businesses across the Kingdom are increasingly turning to digital solutions to improve efficiency, reduce costs, and stay competitive in an interconnected global market.

Leading the charge is Saudi Telecom Company (stc Group), which has invested heavily in startups through its corporate investment fund (CIF). Since its inception, CIF has focused on early-stage startups in cybersecurity, digital gaming, Internet of Things (IoT), and AI.

Additionally, the InspireU accelerator program, launched by stc Group, has incubated over 90 digital projects with a combined market value exceeding SAR 12 billion. These projects, ranging from cloud computing solutions to advanced analytics platforms, serve over 40 million users and have had a transformative impact on the local economy.

Other prominent players in the enterprise software domain include global tech firms like Oracle and SAP, which have expanded their presence in Saudi Arabia to support the growing demand for enterprise-grade solutions.

Empowering SMEs: The Backbone of Economic Diversification

Small and medium-sized enterprises (SMEs) are the lifeblood of Saudi Arabia’s economy, contributing nearly 30% to GDP and employing a significant portion of the workforce. Recognizing their critical role, the Saudi government has launched numerous initiatives to empower SMEs and integrate them into the digital economy.

Monsha’at, the Small and Medium Enterprises General Authority, has been at the forefront of these efforts. Its financial support programs, regulatory reforms, and capacity-building initiatives have created a conducive environment for SME growth. According to Monsha’at’s 2024 SME Monitor report, the number of active fintech startups in the Kingdom grew to 224 by mid-year, reflecting a dynamic and fast-growing sector.

The fintech boom is indicative of broader trends within the SME ecosystem. From food-tech startups like Calo, which raised $25 million in a Series B funding round, to logistics platforms revolutionizing supply chains, SMEs are driving innovation across diverse industries.

Private Sector Investment: A Crucial Catalyst

While government initiatives have laid the foundation, private sector investment has been instrumental in driving Saudi Arabia’s startup ecosystem forward. Venture capital firms and corporate investors are increasingly drawn to the Kingdom’s burgeoning opportunities in AI and enterprise software.

For instance, 7startup, a venture capital firm specializing in deep tech and next-gen technologies, has been a prominent player in fostering innovation. Similarly, funds like STV and Raed Ventures are actively investing in high-potential startups to scale their operations and contribute to the economy.

The influx of private capital has also fueled cross-border collaborations. International investors see Saudi Arabia as a gateway to the broader Middle East and North Africa (MENA) region, offering unparalleled access to untapped markets and resources.

The Challenges Ahead

Despite the impressive strides made, challenges remain. Chief among them is the need for a skilled workforce. While initiatives like the NCAI’s training programs are addressing this gap, there is a pressing need to develop local talent to sustain growth.

Another hurdle is the regulatory landscape. Although the government has made significant progress in creating a startup-friendly environment, entrepreneurs still face bureaucratic hurdles in certain areas, such as intellectual property rights and data privacy regulations.

Furthermore, the high cost of technology adoption can be prohibitive for smaller startups, necessitating continued financial support and incentives.

Future Outlook: A Regional Leader in Tech and Innovation

Saudi Arabia’s focus on AI, enterprise software, and SMEs is more than just a strategic pivot—it represents a paradigm shift in how the Kingdom views its economic future. By 2024, the groundwork laid by Vision 2030 has already begun to yield results, with record-breaking investments and a thriving entrepreneurial culture.

Looking ahead, Saudi Arabia is poised to become a regional hub for technology and innovation. Its well-funded initiatives, robust infrastructure, and growing pool of talent make it an attractive destination for startups and investors alike.

As Saudi officials like Abdullah Al-Swaha emphasize, the Kingdom’s future lies in its ability to leverage technology for economic growth and global competitiveness. The continued commitment to innovation ensures that Saudi Arabia remains on the cutting edge of global trends, from AI-driven solutions to enterprise-grade software applications.

To conclude, the transformation of Saudi Arabia’s startup ecosystem in 2024 is a testament to the Kingdom’s ambitious vision for a diversified economy. With AI, enterprise software, and SMEs at the forefront, Saudi Arabia is not only reshaping its domestic economy but also positioning itself as a global leader in innovation.

By addressing challenges and capitalizing on opportunities, the Kingdom is charting a path toward sustained growth, economic resilience, and technological leadership. The journey is far from over, but the milestones achieved so far provide a glimpse into a promising future.

This pivotal moment in Saudi Arabia’s startup journey is not just about technology or investment—it's about redefining what’s possible in a rapidly changing world.

Kholoud Hussein 

Saudi Arabia's Public Investment Fund (PIF) has been at the forefront of the Kingdom's economic transformation, aligning with Vision 2030 to reduce dependence on oil revenues and foster a diversified, sustainable economy. In 2024, PIF has undertaken significant initiatives to propel this agenda forward, focusing on domestic investments, strategic partnerships, and sectoral development.

Strategic Shift Towards Domestic Investments

In 2024, PIF announced a strategic pivot to concentrate more on domestic projects, aiming to reduce the proportion of its international investments from approximately 30% to 18-20%. This shift underscores the Kingdom's commitment to developing local industries and infrastructure, thereby stimulating economic growth and job creation within Saudi Arabia. Yasir Al-Rumayyan, Governor of PIF, emphasized this focus during the Future Investment Initiative conference in Riyadh, stating that the fund's strategy is prioritizing domestic investments that align with Vision 2030 objectives. 

Major Domestic Initiatives and Projects

PIF's domestic investment strategy encompasses several high-profile projects aimed at transforming Saudi Arabia's economic landscape:

- Neom: A futuristic city envisioned as a hub for innovation, technology, and sustainable living. Neom represents a cornerstone of Saudi Arabia's diversification efforts, attracting global attention and investment. 

- Adeera: In December 2024, PIF launched Adeera, a hotel management company dedicated to developing distinct Saudi hospitality brands. This initiative aims to enhance the Kingdom's tourism sector, aligning with Vision 2030's goal to increase tourism's contribution to the GDP. 

- Private Sector Forum 2024: PIF hosted its second Private Sector Forum in February 2024, bringing together local and international investors to explore opportunities within Saudi Arabia. The forum showcased PIF's commitment to engaging the private sector in the Kingdom's economic transformation. 

International Collaborations and Agreements

While focusing on domestic growth, PIF continues to engage in strategic international partnerships to bolster its investment portfolio and bring global expertise to Saudi Arabia:

- Memorandums of Understanding (MoUs) with Japanese Banks: In October 2024, PIF signed MoUs worth up to $51 billion with Japanese financial institutions, including Mizuho Bank, Sumitomo Mitsui Financial Group, and MUFG Bank. These agreements aim to enhance capital flows and support PIF's investment activities. 

- Collaboration with Brookfield: PIF entered into a memorandum of understanding with Brookfield to act as a strategic anchor investor for Brookfield Middle East Partners, a new private fund targeting significant investments in Saudi Arabia. This collaboration is expected to attract foreign direct investment and expertise into the Kingdom. 

Sectoral Focus and Economic Diversification

PIF's investment strategy is characterized by a focus on key sectors that are pivotal to Saudi Arabia's economic diversification:

- Technology and Innovation: PIF has demonstrated a strong commitment to the technology sector, including plans to create a $40 billion fund focused on artificial intelligence (AI). This initiative positions Saudi Arabia as a significant player in the global AI landscape, fostering innovation and technological advancement within the Kingdom. 

- Sustainable Energy: Aligning with global sustainability trends, PIF has invested in renewable energy projects to support the Kingdom's transition to a sustainable energy future. These investments are integral to reducing carbon emissions and promoting environmental stewardship.

- Sports and Entertainment: PIF's investments in the sports sector, including ownership stakes in international sports clubs and hosting major sporting events, aim to position Saudi Arabia as a global sports hub, enhancing tourism and international recognition.

Financial Performance and Economic Impact

PIF's strategic investments have significantly contributed to Saudi Arabia's economic growth:

- Asset Growth: As of March 2024, PIF's total consolidated assets amounted to SAR 1,308 billion, reflecting substantial growth and financial stability. 

- Credit Rating: In November 2024, Fitch Ratings affirmed PIF's credit rating at 'A+' with a stable outlook, indicating strong financial health and confidence in the fund's investment strategy. 

In 2024, PIF has demonstrated a robust commitment to driving Saudi Arabia's diversification agenda through strategic investments and partnerships. By focusing on domestic projects and key sectors, PIF is laying the foundation for a resilient and diversified economy, aligning with the Kingdom's Vision 2030 objectives. 

Kholoud Hussein 

Saudi Arabia's Vision 2030 is a comprehensive plan to diversify the Kingdom's economy and reduce its dependence on oil revenues. A pivotal component of this vision is the development of a robust fintech sector, which is expected to play a significant role in modernizing the financial landscape and driving economic growth. As of 2024, the Kingdom has made substantial progress toward becoming a leading fintech hub, with ambitious targets set for 2030.

Growth of Fintech Startups Driven by AI and Blockchain Technologies

The fintech landscape in Saudi Arabia has experienced remarkable growth in recent years. In 2020, approximately 60 fintech companies were operating in the Kingdom. By 2024, this number had surged to 226, representing a compound annual growth rate (CAGR) of 61%. This rapid expansion is largely attributed to the integrating of advanced technologies such as artificial intelligence (AI) and blockchain, which have enabled startups to offer innovative financial solutions.

AI has enhanced customer experiences through personalized services, efficient customer support, and improved risk assessment models. Blockchain technology, on the other hand, has facilitated secure and transparent transactions, fostering trust among users. The convergence of these technologies has led to the development of cutting-edge solutions in payments, lending, and wealth management, positioning Saudi Arabia as a burgeoning fintech hub in the region.

Impact of Open Banking Regulations Introduced by SAMA

The Saudi Central Bank (SAMA) has played a crucial role in fostering fintech innovation through the introduction of progressive regulations. One of the most significant developments is the implementation of the Open Banking Framework, which allows third-party providers to access financial data (with customer consent) to offer tailored financial services.

This initiative has spurred competition and collaboration between traditional banks and fintech startups, leading to a more dynamic financial ecosystem. By promoting transparency and data sharing, open banking has empowered consumers with greater control over their financial information and has encouraged the development of personalized financial products.

Trends in Mobile Payments, Digital Wallets, and AI-Powered Lending Platforms

The adoption of digital financial services has accelerated in Saudi Arabia, with mobile payments and digital wallets becoming increasingly prevalent. The introduction of the Fatoora Platform, an electronic invoicing system developed by the Zakat, Tax and Customs Authority (ZATCA), has further streamlined digital transactions.

AI-powered lending platforms have also gained traction, offering quick and efficient loan approvals by leveraging machine learning algorithms to assess creditworthiness. These platforms have improved access to credit for individuals and small businesses, contributing to financial inclusion and economic growth.

Saudi Arabia's Positioning as a Regional Fintech Hub

Saudi Arabia's strategic initiatives have positioned it on a promising trajectory to achieve its goal of hosting 525 fintech companies by 2030, supported by over SAR 12.2 billion in direct venture capital. The approval of three digital banks, offering a range of traditional banking services via smartphones and online channels, signifies a significant advancement in the Kingdom's digital banking landscape.

The government's commitment to economic transformation is evident in its support for the fintech sector. Finance Minister Mohammed Al-Jadaan emphasized this dedication, stating, "We are not 'complacent' about Saudi Vision 2030". This unwavering focus on economic diversification underscores the importance of fintech in the Kingdom's future.

Key Players, Investments, and Innovations

The fintech ecosystem in Saudi Arabia comprises a diverse range of startups and established financial institutions. Significant investments have been made to support this growth, with the fintech sector expected to reach $63.90 billion by 2024, driven by substantial state and private investments.

Innovations in the sector include the development of AI-driven tools for ESG compliance, green financing trends, and the rise of "quick commerce" startups impacting the logistics sector. These advancements reflect the dynamic nature of Saudi Arabia's fintech landscape and its alignment with global technological trends.

Finally, Saudi Arabia's fintech boom, underpinned by Vision 2030, represents a transformative journey toward economic diversification and modernization. The integration of advanced technologies, supportive regulatory frameworks, and significant investments have collectively positioned the Kingdom as a burgeoning fintech hub in the region. As Saudi Arabia continues to implement its Vision 2030 initiatives, the fintech sector is poised to play a pivotal role in shaping the future of the nation's economy.

Ghada Ismail

When starting a company, the excitement of innovation and ambition often overshadows the critical legal and financial groundwork needed to secure a startup’s future. Yet, ensuring clear agreements and protecting intellectual property from the outset can save co-founders from potential disputes down the road. In this installment, we explore the essential legal and financial considerations every co-founder must address to build a stable foundation for their venture.

1. The Importance of Clear Co-Founder Agreements

From day one, having a co-founder agreement in place is non-negotiable. This document should outline key elements such as equity ownership, roles, decision-making authority, and an agreed-upon exit strategy.

Without such an agreement, even the strongest partnerships can falter under pressure. Questions such as "Who owns how much?" or "What happens if one of us leaves?" can lead to conflicts that are avoidable with a clear legal framework. These agreements serve as a reference point during challenging times, ensuring transparency and mutual understanding.

2. Dealing with Equity Splits: Fair and Transparent Agreements

Determining how to split equity is one of the most delicate conversations co-founders will have. A fair split isn’t always 50-50; it’s about aligning contributions—both financial and operational—with ownership stakes.

To achieve this, co-founders should openly discuss:

• The value of each co-founder’s input (time, expertise, and capital).
• Vesting schedules to ensure equity is earned over time, safeguarding against early departures.
• Future roles and their impact on the company’s growth.

Transparency during these discussions builds trust and prevents misunderstandings later on.

3. Protecting Intellectual Property (IP)

For many startups, intellectual property is their most valuable asset. Co-founders must establish clear ownership rights for anything created during the course of the venture.

Key steps include:

• Defining who owns what in terms of IP contributions.
• Registering patents, trademarks, or copyrights under the company’s name to avoid individual claims.
• Drafting confidentiality agreements to protect sensitive information.

These measures ensure that the startup’s core innovations remain safeguarded, regardless of changes in the co-founder team.

4. Preparing for Exit: Buyouts, Acquisitions, and Co-Founder Exits

While no one likes to think about it, co-founders must plan for scenarios where one partner decides to leave. Exit strategies are crucial for ensuring the business can continue without disruption.

Key considerations include:

• Buyout clauses that allow remaining founders to purchase the departing founder’s equity at a fair value.
• Provisions for handling acquisitions or mergers, including how proceeds are distributed.
• Non-compete agreements to prevent departing co-founders from starting a competing business.

Addressing these scenarios early provides stability and protects the company’s interests in the long term.

Final Thoughts

Starting a company with a co-founder offers immense benefits, but it also requires careful planning and open communication about legal and financial matters. Clear agreements, equitable arrangements, and robust protections for intellectual property are not just safeguards—they are enablers of trust and long-term success.

By addressing these considerations from the outset, co-founders can focus on building a thriving business, confident that their shared vision is well-protected. Ultimately, the strength of a co-founder partnership lies in its ability to combine shared ambition with sound strategies, creating a legacy that extends beyond individual contributions.

With this, we conclude our mini-series on co-founders. Whether you're just starting your journey or navigating the complexities of an established partnership, remember that the foundation you build today will shape the success of your startup for years to come.

Kholoud Hussein 

Startups represent innovation, ambition, and the promise of transforming industries. However, the harsh reality is that a significant percentage of startups fail within their first few years. According to a CB Insights report, 70% of tech startups fail, with 38% citing a lack of funding or cash flow as a primary reason. While these statistics are sobering, understanding the causes behind such failures can help entrepreneurs better navigate their journey and build sustainable businesses.

This blog explores the key reasons why startups falter in their early stages, supported by research, expert insights, and real-world examples.

1. Lack of Market Need: The Fatal Flaw

One of the most common reasons for startup failure is creating a product or service that the market does not need. CB Insights highlights this as the top cause, with 35% of failed startups identifying it as their downfall.

Why This Happens:

• Entrepreneurs often fall in love with their ideas without validating their demands.
• Insufficient market research leads to misconceptions about customer pain points.

Startup founder John Greathouse shared his experience in an interview with Forbes: “We built a solution looking for a problem. It was an amazing piece of technology, but we didn’t fully understand our customers’ real needs.”

2. Poor Financial Management: The Cash Flow Crunch

Startups often operate on razor-thin margins, making financial mismanagement a critical threat. U.S. Bank data shows that 82% of business failures are due to cash flow problems.

Challenges:

• Misjudging burn rate (the speed at which cash reserves are spent).
• Failing to secure enough funding for the operational runway.
• Overestimating revenue growth or underestimating costs.

David Skok, a venture capitalist, explains: “Startups underestimate how long it will take to reach cash flow positivity and fail to raise enough capital. A lack of working capital is like trying to climb Everest without oxygen.”

3. Ineffective Team Dynamics

Building the right team is critical to a startup's success. CB Insights found that 23% of failed startups attributed their demise to team issues.

Common Problems:

• A lack of complementary skills among founders.
• Internal conflicts that distract from operational priorities.
• Hiring the wrong people in key roles, such as sales or technology.

A clear example of that is the downfall of the startup Quibi, despite its $1.8 billion in funding, is often attributed to leadership missteps and a failure to align the team around a clear strategy.

4. Competition: The Unseen Threat

Many startups underestimate the level of competition in their industry. CB Insights notes that 20% of failed startups cited competition as a significant factor.

Why Startups Struggle Against Competitors:

• Lack of differentiation: Offering similar products or services as established players without a compelling unique value proposition (UVP).
• Insufficient resources to compete with well-funded incumbents.

5. Marketing and Customer Acquisition Missteps

Even the best products fail if they don’t reach the right audience. Many startups underestimate the importance and cost of customer acquisition.

According to a Startup Genome Report, 74% of startups fail because they scale prematurely, often spending excessively on marketing before product-market fit is achieved.

Challenges in Marketing:

• Misaligned messaging that fails to resonate with target audiences.
• Over-reliance on paid advertising without diversifying acquisition strategies.

Startup founder Sara Johansson remarked: “We spent heavily on ads, assuming they’d generate consistent returns. Instead, we burned through our budget without building lasting customer relationships.”

6. Overexpansion: Growing Too Fast, Too Soon

Startups often rush to expand into new markets or introduce new products, stretching their resources thin. This approach can backfire, especially without a stable foundation.

Why Overexpansion Fails:

• Increased operational complexity leads to inefficiencies.
• Diverting focus from core products or markets.

7. Inadequate Adaptability: Failing to Pivot

Startups often face unexpected challenges and must pivot their business model or product offering to survive. Failure to do so can result in stagnation or irrelevance

.

8. External Factors: The Uncontrollable Variables

Economic downturns, regulatory changes, or supply chain disruptions can also contribute to startup failures. While these factors may be beyond our control, resilience, and preparedness can mitigate their impact.

The COVID-19 pandemic forced many startups to shut down due to disruptions in operations or demand. However, companies that adapted to the new normal, such as Zoom, thrived.

Turning Challenges into Opportunities

While the statistics on startup failures are daunting, they also provide valuable lessons. By understanding common pitfalls—such as market misalignment, poor financial management, or ineffective teams—entrepreneurs can take proactive steps to increase their chances of success.

As the famous startup mantra goes, “Fail fast, fail forward.” Every challenge presents an opportunity to learn and improve. By leveraging these insights, aspiring founders can navigate the turbulent early phases of their journey and build businesses that thrive in the long term.

Noha Gad

As the digital landscape continues to evolve, Saudi Arabia is positioning itself at the forefront of Web3 and blockchain technologies, driven by a strategic vision to harness innovation for economic growth. The Kingdom's commitment to advancing these technologies is evident through various initiatives, including the establishment of dedicated hubs and partnerships aimed at fostering a vibrant ecosystem. 

As part of Vision 2030, the Kingdom has been actively investing in emerging technologies, recognizing blockchain's potential to enhance transparency, security, and efficiency in both public and private enterprises.

In this rapidly evolving ecosystem, Web3 has emerged as a transformative force that reshapes industries and creates new opportunities for innovation and entrepreneurship in Saudi Arabia.

Adaverse, a prominent player in the Web3 investment landscape, is actively contributing to this burgeoning market. As one of the leading venture funds and blockchain accelerators in the region, Adaverse invested in several startups, such as Takadao, UmrahCash, Tharawat Green Exchange (TGE), and Grintafy, as part of its mission to empower local entrepreneurs and facilitate the growth of decentralized technologies across the region.

In this regard, Sharikat Mubasher held an interview with Vincent Li, Founding Partner at Adaverse, to learn more about the company’s activities in Saudi Arabia and his insights on the future of Web3 and blockchain technologies in the Kingdom and the region.

What sets Adaverse apart from other venture funds and blockchain accelerators in the region?

What sets us apart is our unique approach to building the Web3 ecosystem through a venture-building partnership model. We have successfully invested in around 100 founders across multiple regions, including Asia, Africa, and now Saudi Arabia. Our philosophy is centered on supporting persistent founders with necessary web3 knowledge throughout the whole startup journey, and valuable experiences and resources from other markets in the globe.

Unlike traditional venture funds, we focus on projects that solve real-world problems and drive mass adoption of blockchain technology. Our flat organizational structure and partnership-based approach allow us to work closely with founders, empowering them rather than simply providing capital.

What motivated Adaverse to commit $10 million to Saudi Web3 startups?

Our decision to commit to Saudi Arabia was driven by extensive market research and field visits that highlighted Saudi Arabia's significant potential for Web3 development. This commitment aligns with Saudi Vision 2030 and the country's digital transformation goals. 

We have already invested in several promising Saudi ventures, including Grintafy, UmrahCash, TGE (Tharawat Green Exchange), TakaDAO, and others, with more investments in the pipeline. 

The unique government support we have received has reinforced our conviction that Saudi Arabia is positioned to become a global Web3 hub. This investment represents our long-term commitment to fostering innovation and supporting the local ecosystem.

In your opinion, what are the unique opportunities that blockchain and Web3 technologies offer in Saudi Arabia?

Saudi Arabia presents unique opportunities for blockchain and Web3 technologies, particularly in solving real-world challenges. Let me share some concrete examples from our portfolio with the disclaimer that the list is non-exhaustive: 

We have invested in TGE, which is revolutionizing carbon offsetting by connecting carbon offsetters with local nurseries and land projects via blockchain technology, directly supporting Saudi Arabia's ambitious goal of planting 10 billion trees by 2040. 

In the sports sector, we have backed Grintafy, which is transforming football talent discovery through blockchain technology, serving over 2 million users across its ecosystem.

We are also seeing great potential in projects like Mithu App, which addresses the underserved loyalty program market in Riyadh, where only 2.5% of restaurants currently offer such programs. 

Similarly, solutions like UmrahCash demonstrate how blockchain can revolutionize financial services for the 21 million migrant workers and religious visitors in Saudi Arabia.

What makes Saudi Arabia particularly exciting for Web3 development is the strong government support for technology innovation, combined with the Kingdom's strategic position and vision for digital transformation.

These opportunities align perfectly with our focus on practical applications that drive mass adoption. The diversity of use cases, from environmental sustainability to sports tech to financial services, shows how Web3 can create real value across multiple sectors in the Saudi economy.

What key challenges has Adaverse faced in adopting blockchain technologies in the Kingdom, and how has the company tackled them?

The key challenges we have faced primarily revolve around achieving mass adoption and educating the market about Web3's potential. While blockchain technology is still consolidating its foundations, we have tackled these challenges by focusing on projects that address tangible problems. Our approach has been to invest in startups that make blockchain technology accessible and practical for everyday users. We have also worked closely with regulatory bodies and government institutions to ensure our initiatives align with local requirements. 

What are the company’s strategic plans for further expansion in Saudi Arabia and the region?

Our strategic plans for expansion in Saudi Arabia and the region focus on three key areas. First, we are continuing to identify and invest in promising Web3 startups that solve real-world problems. Second, we are actively building partnerships with local institutions and government bodies to strengthen the ecosystem. 

Third, we are organizing events and initiatives to promote Web3 adoption locally and connect valuable investment and market resources internationally.

We are particularly excited about upcoming projects in the social network and real estate markets, which we believe have significant potential in the region. Our strategy remains aligned with our long-term perspective of supporting persistent founders and nurturing projects over time.

How do you see the long-term impact of Web3 technologies on Saudi Arabia's economic and social landscape?

Looking at the long-term impact of Web3 technologies on Saudi Arabia's landscape, I believe we are at the beginning of a transformative journey. Based on our experience across multiple markets, we see Web3 playing a crucial role in achieving Saudi Vision 2030's goals. The technology will enable new models of value exchange, enhance transparency in various sectors, and create new economic opportunities. We are already seeing this impact through our portfolio companies, which are addressing real challenges in areas like financial services, loyalty programs, and digital asset management. The key is to focus on practical applications that can drive mass adoption and create tangible value for the Saudi economy. 

How does Adaverse contribute to the development of a vibrant Web3 community in Saudi Arabia?

Adaverse contributes to the Web3 community development through multiple strategic initiatives. Most recently, we released our landmark report, "State of Web3 in Saudi Arabia," which serves as a comprehensive guide for entrepreneurs, investors, and talent looking to participate in the Kingdom's Web3 ecosystem. The report highlights tremendous opportunities in sectors like gaming, fintech, e-commerce, and proptech, demonstrating our commitment to building knowledge in the ecosystem.

Beyond research, we actively organize events and knowledge-sharing sessions, bringing together founders, investors, and technology enthusiasts. We work closely with local institutions to create opportunities for collaboration and innovation. 

Our approach is not just about providing capital – we are helping to shape Saudi Arabia's transformation into a tech-driven powerhouse by building alliances and partnerships that strengthen the entire ecosystem. Through these efforts, we are positioning the Kingdom as a premier destination for Web3 innovation, attracting both local and international talent to contribute to this growing community.

What are Adaverse’s plans to nurture Saudi talent in the blockchain and Web3 space?

During our extensive research for the "State of Web3 in Saudi Arabia”, one of the key findings was that we need more Web3 talent in Saudi, and we are committed to helping achieve that! We are implementing a multi-faceted approach that encourages young entrepreneurs to be curious and experimental with frontier technologies. 

First, we are creating opportunities for hands-on experience through our portfolio companies, where Saudi talent can join startups and immerse themselves in the ecosystem. 

Second, we have a plan to develop partnerships with local educational institutions and tech hubs to provide training and mentorship programs. 

As I often tell aspiring youth in the Web3 landscape, do not be afraid to experiment, fail, and learn from your experiences. 

This practical approach, combined with our long-term commitment to the region, will help develop the next generation of Web3 innovators in Saudi Arabia. The key is to empower local talent by asking questions rather than giving assignments, maintaining our philosophy of partnership-based growth.

Kholoud Hussein 

As sustainability becomes a critical priority for businesses worldwide, integrating Environmental, Social, and Governance (ESG) principles transforms the financial sector. For Saudi Arabia, where Vision 2030 emphasizes sustainable economic growth, financial institutions increasingly turn to artificial intelligence (AI) to align their strategies with ESG goals. By enabling better reporting, transparency, and green financing, AI is helping these institutions create a more sustainable and socially responsible financial ecosystem.

This final installment in our blog series explores how AI is supporting ESG objectives in Saudi Arabia’s financial market. From advanced tools for reporting to real-world applications, we’ll highlight the transformative potential of AI in fostering a greener and more equitable financial future.

1. Aligning ESG Goals with AI in Saudi Arabia

Saudi financial institutions are embracing AI to seamlessly integrate ESG considerations into their operations and investment decisions.

Meeting Sustainability Goals through AI

AI provides financial institutions with the tools to measure, analyze, and improve their sustainability performance.

• Environmental Impact Analysis: AI helps organizations assess their carbon footprint by analyzing data across operations, supply chains, and investments.
• Social Responsibility Metrics: Advanced algorithms evaluate labor practices, community engagement, and diversity policies, enabling institutions to monitor and improve their social impact.
• Governance Insights: AI systems enhance governance practices by analyzing board structures, compliance adherence, and corporate ethics.

Alignment with Global ESG Frameworks

AI-driven platforms enable Saudi institutions to align with global ESG standards, such as the United Nations’ Sustainable Development Goals (SDGs) and the Task Force on Climate-related Financial Disclosures (TCFD). These tools ensure financial activities contribute to sustainable development while maintaining compliance with international benchmarks.

2. AI-Powered Tools for ESG Reporting and Green Financing

AI is revolutionizing ESG reporting and green financing, empowering financial institutions to deliver on their sustainability promises effectively.

Advanced ESG Reporting Tools

Traditional ESG reporting can be time-consuming and prone to inconsistencies. AI-powered solutions streamline this process by automating data collection, analysis, and presentation.

• Data Integration: AI systems consolidate data from diverse sources, including corporate reports, satellite imagery, and IoT sensors, to provide a holistic view of ESG performance.
• Real-Time Monitoring: AI tracks key ESG metrics in real-time, enabling institutions to identify risks and opportunities more quickly.
• Predictive Analytics: By analyzing historical data, AI can predict ESG trends and guide strategic decision-making.

Green Financing Enablement

Green financing, including funding for renewable energy projects and sustainable infrastructure, is a key pillar of ESG efforts. AI facilitates this by:

• Risk Assessment: AI evaluates the financial and environmental risks of green investments, ensuring projects align with both profitability and sustainability criteria.
• Project Selection: AI algorithms prioritize green projects based on their ESG impact and feasibility.
• Attracting Investors: Transparent AI-driven reports attract ESG-conscious investors by providing detailed insights into project sustainability.

3. Promoting Transparency in Investments Through AI-Driven Analytics

Transparency is a cornerstone of ESG-focused investing, and AI is playing a critical role in fostering it across Saudi Arabia’s financial sector.

Enhanced Due Diligence

AI-powered tools perform thorough due diligence by analyzing vast datasets, including financial reports, environmental impact statements, and media coverage.

• These tools identify greenwashing (misleading claims about sustainability) by detecting discrepancies between stated goals and actual performance.
• Machine learning models flag companies with poor ESG compliance, helping investors avoid reputational and financial risks.

Investor Confidence Through Transparency

By providing detailed and verifiable insights into ESG performance, AI builds investor confidence.

• Portfolio Optimization: AI-driven platforms recommend ESG-compliant investments, allowing asset managers to build portfolios that align with sustainability goals.
• Impact Measurement: AI tracks the social and environmental impact of investments, ensuring alignment with both financial and ethical objectives.

4. Examples of ESG-Focused AI Applications in Saudi Arabia

Saudi Arabia’s financial market is already witnessing the transformative impact of AI in advancing ESG initiatives.

Renewable Energy Financing

AI is aiding financial institutions in evaluating and funding renewable energy projects such as solar and wind farms.

• Advanced algorithms assess project feasibility, environmental impact, and long-term profitability, ensuring sustainable investments.
• For example, a Saudi renewable energy fund used AI to optimize its portfolio, achieving higher returns while reducing carbon emissions.

AI-Powered ESG Indexing

Some Saudi investment platforms have introduced AI-powered ESG indices that rank companies based on their sustainability performance.

• These indices help investors identify top-performing ESG-compliant firms, driving capital toward responsible businesses.

Smart Supply Chain Management

Financial institutions are leveraging AI to support companies in adopting sustainable supply chain practices.

• AI tools monitor supplier compliance with ESG standards, promoting ethical sourcing and reducing environmental impact.

5. AI and ESG: A Perfect Partnership for Vision 2030

Saudi Arabia’s Vision 2030 underscores the importance of sustainability and innovation in driving long-term economic growth. AI’s role in advancing ESG goals is perfectly aligned with these ambitions.

• By leveraging AI, Saudi financial institutions are not only meeting global sustainability standards but also positioning themselves as leaders in ethical finance.
• The integration of AI and ESG frameworks supports Vision 2030’s objectives of reducing carbon emissions, fostering social responsibility, and enhancing economic governance.

Looking Ahead: A Sustainable Financial Future

As Saudi Arabia’s financial institutions continue to embrace AI for ESG integration, the future of sustainable finance looks brighter than ever. However, the journey is ongoing, and challenges such as data availability, regulatory alignment, and cultural shifts must be addressed.

The completion of this blog series marks the beginning of broader conversations about how AI can redefine financial services in Saudi Arabia and beyond. By prioritizing ESG goals and leveraging cutting-edge technology, Saudi Arabia is setting a global benchmark for innovation in sustainable finance.

To conclude, AI is revolutionizing ESG adoption in Saudi Arabia’s financial market by enabling robust reporting, promoting transparency, and driving green financing initiatives. Through real-world applications and alignment with global frameworks, financial institutions are achieving both ethical and economic objectives.

As we conclude this series, one thing is clear: AI is not just a tool for transformation—it is the foundation for building a sustainable, transparent, and inclusive financial ecosystem. Saudi Arabia’s commitment to innovation and sustainability ensures that its financial sector will continue to thrive while contributing to a better future for all.